Skip to main content
Everyday Tools

Home Loan Eligibility Calculator

Before you shortlist homes, it helps to know how much a bank is likely to lend you. Lenders mostly look at how much of your income can safely go to EMIs, a measure called the fixed obligations to income ratio (FOIR). This calculator uses that method to turn your income into an estimated loan amount.

Last reviewed:

₹

Take-home income, including co-applicant income if any.

₹
%

Lenders commonly allow roughly 40–60%, depending on income and policy.

%
Yr
Estimated eligible loan
₹40,33,079 (₹40.33 lakh)
Maximum new EMI
₹35,000
Total EMIs lenders allow
₹45,000
Existing EMIs
₹10,000
  • An estimate only. Banks also check your credit score, age, job stability and the property before sanctioning an amount.

The result is an estimate. The final sanction also depends on your credit score, age, employment, the property and the lender's own rules.

How to use this calculator

  1. Enter your monthly net income, including a co-applicant's if applying together.
  2. Enter your existing monthly EMIs, such as car and personal loans.
  3. Set the FOIR, the interest rate and the tenure.
  4. Read the maximum EMI and the loan amount it supports.

Formula and variables

Maximum new EMI = Income × FOIR − Existing EMIs Loan = EMI × ((1 + r)ⁿ − 1) ÷ (r × (1 + r)ⁿ)

  • FOIR - the share of income that can go to all EMIs, commonly around 40–60%.
  • r - monthly interest rate (annual ÷ 12 ÷ 100).
  • n - number of monthly instalments.

The loan formula is the EMI formula solved the other way round.

Worked example

A person earns ₹1,00,000 a month, pays ₹10,000 in existing EMIs and wants a 20-year loan at 8.5%. The lender allows a 45% FOIR.

Inputs and results for the worked example
Income, existing EMIs₹1,00,000 and ₹10,000
FOIR, rate, tenure45%, 8.5%, 20 years
Maximum new EMI₹35,000
Estimated eligible loan₹40,33,079
  1. 45% of ₹1,00,000 is ₹45,000, and removing the ₹10,000 existing EMI leaves ₹35,000.
  2. A ₹35,000 EMI over 240 months at 8.5% can repay a loan of about ₹40.3 lakh.

What changes the result

  • Income and stability. Salaried applicants with stable jobs are usually assessed more favourably.
  • Existing debt. Every existing EMI lowers the room for a new one.
  • Credit score. A good score can improve both eligibility and the rate.
  • Age and tenure. Lenders limit the tenure so the loan ends before retirement.
  • Co-applicant. Adding an earning co-applicant can raise the eligible amount.

Benefits and practical uses

  • Know your budget before house hunting.
  • See how a co-applicant or a lower EMI burden changes eligibility.
  • Understand what lenders look at.

Assumptions and limitations

  • FOIR is chosen by you. Lenders differ and may use their own rules.
  • Credit score, age, property value and loan-to-value limits are not modelled.
  • A single fixed rate for the whole tenure.

Frequently asked questions

How is home loan eligibility decided?

Mainly by income, existing obligations, credit score, age, tenure and the property being financed.

What is FOIR?

The fixed obligations to income ratio is the share of your monthly income that goes to EMIs and other fixed payments.

What FOIR should I use?

Many lenders allow 40 to 60 per cent depending on income. Higher incomes tend to get higher limits. Ask your bank for its exact policy.

Can I increase my eligibility?

Clear existing loans, add a co-applicant, choose a longer tenure or improve your credit score.

Is this a guaranteed loan amount?

No. It is an estimate. The bank decides after verifying your documents and the property.

References

Page last reviewed on . This calculator gives estimates for planning only; it is not financial advice and not an offer from any lender.